5.26.2015

Amid skyrocketing inflation and a contracting economy, Venezuelan consumers have been faced with widespread shortages of products. Nicolás Maduro’s government blames hoarders looking to destabilize the government, but businesses and economists say it’s the result of government price controls that discourage production and restrictions on foreign currency and make it difficult for manufacturers to purchase raw materials.
Food, car parts, cooking oil, detergent, and household appliances have all been in short supply. But it’s toilet paper that has been the iconic product of the shortage, with fresh rolls quickly running out from stores amid overwhelming demand. In late 2013 the government seized control of a toilet paper factory and announced plans to import millions of rolls, but shortages have continued.

Back in February, when the Venezuelan government introduced its official and complicated three-tier exchange rate, 190 bolivars bought you one U.S. dollar on the black market—which is where real people without government connections shop for hard currency in Caracas. Now, just a few months later, the bolivar is worth about half that much. This is a brilliant testimony to the innovative power of the government's socialist policies: faced with a crushing shortage of toilet paper, the Bolivarian regime has converted its own currency into butt-wipe.